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Saturday, November 3, 2012

US suit alleges mortgage fraud

'via Blog this'The process led to "widespread falsification" of mortgage data, Bharara charged. And when Countrywide executives became aware of the high number of borrowers defaulting, it hid the problem, according to the lawsuit.

In early 2008, for example, Countrywide offered bonuses for employees who could "rebut" the high rate of defaults. The standards were low, according to the lawsuit: If a review found that the income a borrower listed on his application seemed unreasonable, an employee could rebut the finding "simply by arguing that the stated income was reasonable."